When I first started writing about credit scores more than a decade ago, few
people knew what these three-digit numbers were or how they worked.
Today most people have at least a vague understanding that credit scores
are important. But they often don’t realize how important—until they get
turned down for a loan or an apartment, or wind up paying more interest or
higher insurance premiums than they expected.
When a consumer applies for employment, or for a service that reviews credit histories,
(such as insurance, an apartment rental, utilities, cell phone accounts) these data users
may also request and receive a credit report and/or scores from one or more repositories,
to be used to evaluate the consumer’ s application.
A 1994 study conducted by the National Association of Independent Credit Reporting
Agencies (now known as the National Credit Reporting Association) represents a third
approach to the question of credit report accuracy.
The proposed amendments would require certain advertisements for “free credit reports” to
include prominent disclosures designed to prevent consumers from confusing these “free” offers
with the federally mandated free annual file disclosures available through the single centralized
Assessing the usefulness of these data as a poten-tial source of information for the Board involves several tasks. This article is an initial step in the process; it examines the scope and content of the data, using a framework based on key aspects of credit evaluation. This approach is a natural way to begin the assessment process because the credit reporting companies' primary purpose for collecting these data is to facilitate credit evaluation.
After CFA made a random selection of the time frame from which credit files were to be
analyzed, a generic number was assigned to keep the nameless study data from each
study file separated from other study files. No copies or partial copies of any credit
reports, on paper or electronically, were removed from any credit reporting agency
location. Anonymous credit scores and an analysis of the credit data, as reviewed by
credit reporting agency personnel for security and industry knowledge, was supervised
and recorded by the CFA researcher for tabulation.
A 1992 study conducted by Arthur Andersen , commissioned by the Associated Credit
Bureaus (now known as the Consumer Data Industry Association) used a different
methodology to conclude that the error rate was much lower. This study reviewed the
behavior of 15,703 consumers who were denied credit based on a credit grantor’ s scoring
system. From this sample, 1,223 consumers (7.8%) requested their credit report from the
issuing credit repository, and 304 consumers (1.9% of the total sample) disputed the
information on the report. Of these, 36 disputes (11.
CHIlD LABOR IN VIETNAM: THE RELATIVE IMPORTANCE OF POVERTY. RETURNS TO EDUCATION. LABOR MOB ILTTY. AND CREDIT CONSTRAINTS A Model of Tiebout Sorting on Exogenous Community Attributes
In this section, I build a formal model of the Tiebout sorting process described
above. As my interest is in the demand side of the market under full information, I treat the
distribution of school effectiveness as exogenous and known to all market participants.
The complex system for reporting and reviewing credit involves a large number of
participants who fall generally into one of six categories: consumers; data repositories;
data users; data furnishers; credit reporting agencies; and analytical service providers.
Approximately 190-200 million consumers have credit reports maintained by the three
major credit repositories (Experian, Equifax, and Trans Union)
The reverse is true of collection agencies, which provide information to the repositories,
but do not use credit data to evaluate consumer creditworthiness, although they may use
information in credit reports to locate debtors. Repositories also obtain information by
requesting it from public records and government entities and when certain government
entities report directly to the repositories, such as for delinquent child or family support
payments, unpaid parking tickets, or overpayments of unemployment benefits.
Savings banks in Spain have a long tradition of providing social credits to under-served
financially excluded communities. Caja de Granada in particular chairs the International
Association of Social Pledging Credit Establishments1 and like Caixa Galicia and Caixa
Catalunya, grants micro-credits through their foundations, mainly in the regions where they
operate. Caja Granada recently organized a symposium with all its microcredit holders to
ANALYSIS OF CREDIT RATING EQUIT” INDEXES: VOLATILITY COMPARISONS A OPTION CALIBRATION The positive correlation
between choice and performance seems to result entirely from the omission of students
background characteristics; when they are included in Column C, the coefficient becomes
negative and significant.
The Consumer Federation of America (CFA) and the National Credit Reporting
Association (NCRA) designed the details of this study with advice from legal counsel to
ensure the methodology would comply with the requirements of the Fair Credit Reporting
Act, Gramm Leach Bliley Act, and other consumer privacy laws. From the outset, each
organization was mindful of the ethical spirit and intent of these consumer protection and
Despite the gatekeeper role that these scoring systems play regarding access to credit,
housing, insurance, utilities, and employment, as well as pricing for those essentials,
exactly how the formulas perform the transformation from credit report to credit score is
a closely guarded secret. For consumers, regulators, and even industry participants who
rely on the computations in their decision-making, the scoring models largely remain a
When a consumer applies for non-mortgage credit, such as a credit card, unsecured line
of credit, or installment loan (e.g. for an automobile, or furniture), the potential creditor
(data user) can request a credit report (with or without a credit score) from one, two, or
three of the credit repositories. A repository that receives such a request will send the
credit report to the potential creditor, and record an inquiry on the consumer’ s credit
report. The creditor can use the information in the credit report to help decide whether to
extend or deny credit to the consumer,...
On-time payments have a positive influence while late payments have a negative
influence. However, the amount of positive influence a consumer receives from a timely
payment may vary based on the type of creditor. For example, timely payments to a
prime credit card lender may have a greater positive influence on a score than timely
payments to a lender considered less favorable, such as a furniture or consumer
The main goal of our estimation is to study the industry incidence of tax evasion. We
Önd a high tax evasion multiple for doctors, engineers, private tutors, Önancial services agents,
accountants, and lawyers, consistently across di§erent credit models.
We turn to making sense of the industry distribution. We Önd no evidence that the govern-
ment is subsidizing either areas of local economic growth or industries o§ering apprentice-like
training to unskilled workers.
There are about eight to 16 million people with low
and moderate incomes and poor credit who earn
below $40,000 a year who are subjected to the sub
prime lending market. The Federal Reserve reports
that those earning $30,000 or less per year, such
as Jesus, paid an annual interest rate that was 56.1
percent higher than people earning $90,000 a year .
In addition, most buy here/pay here lots do not
report payment history to the credit reporting
agencies, which prevents consumers from strength-
ening their credit history through steady repayment
of their car loan. ...
Nowadays, with the growing importance of the credit-based learning in current educational environment, strong academic advising system is an essential ingredient of learner success, supporting personalized advices aimed at effective and efficient learning. In that context, within the scope of this paper, an intelligent academic advising system approach is introduced focusing on integrating technology-enhanced learning methodologies into a pedagogy-driven and service-oriented architecture based on semantic technology. ...